If you’re wondering about the best time to buy a house, Fall represents the perfect window for you to get the most bang for your buck. One hard and fast rule in real estate is when the temperature starts to drop, so do home prices.
Less demand=lower prices
It’s the simple economic law of supply and demand. Spring and summer are unquestionably the top months for home sales, according to. But that’s also the time when the competition among home buyers is at it’s greatest, pushing up prices. As Fall approaches, that competition dies down, leaving home buyers in a much better negotiating position.
Not only is there less competition in the Fall and Winter months among home buyers, those selling their homes have much more motivation to sell quickly. Many homes on the market in the Fall are those that didn’t quite make the cut during the summer months, meaning they’ve been on the market for awhile. These motivated sellers are eager to put an end to the process and move on to their next home.
Then there are those sellers who’ve put their homes on the market recently. They want to get their house sold and into their new place before the Holidays begin. That means they literally have only a few weeks to get a deal done, move, and get settled in a new home before Thanksgiving. They are far more likely to take less than the asking price to settle their families.
Get those tax benefits
Another advantage of buying a home in the Fall is getting the tax benefits of a mortgage deduction for the current year. As soon as you start paying the mortgage, you can begin claiming the deduction. So if you close in October and start paying in November, you’ve just realized a tremendous deductible amount for your taxes next year.
October is the best month to buy a house
According to a recentsurvey, October is actually the best month to buy a home. They found that, on average, October homebuyers pay 2.6% less than the approximate market value for their home. (And for even more value, RealtyTrac reports buying on Mondays or Fridays lowers costs even further!)
The value for home buyers remains throughout the cold weather months, but October is clearly the high point for both value and inventory selection. That’s one of the downsides to waiting until Fall/Winter to buy: there’s a lot less to choose from. That’s because those considering selling their home know this information, too. If possible, they much prefer to wait until Spring, when prices go up again, to put their homes on the market.
But first-time home buyers are in the unique position of having the flexibility to take advantage of the Fall market. If you’re renting or entering the housing market for the first time, you don’t have to worry about getting rid of your own place at a depressed value. The forces that cause home prices to drop are all upside for you!
So if you’re thinking of taking the plunge and buying your first home, now is the perfect time to do it. You won’t find a better time to get into a home at such a great value.
If you’re a prospective first-time home buyer in the Indianapolis area, check out theJoy and her team will help you determine whether you’re ready to start looking. Their decades of experience living and working in this community gives them unique insights into the market, and their unrivaled dedication to client satisfaction means your needs will always be first.
Could you be ringing in the New Year in your new home? You can be if you start working on it now.